Ripple Partner MoneyGram Issues Statement After US SEC Files Lawsuit

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Earlier this month, Ripple sold $15 million of its MoneyGram stock while not giving any specific reason behind it.

A day after the US Securities and Exchange Commission (SEC) filed a lawsuit on Ripple, its partner MoneyGram issued a statement clarifying its association with the blockchain firm.

In a press statement issued on Wednesday, December 23, MoneyGram clarified that it has never used Ripple’s counterparty services like RippleNet or On-Demand Liquidity (ODL). The press statement notes:

“As a reminder, MoneyGram does not utilize the ODL platform or RippleNet for direct transfers of consumer funds – digital or otherwise. Furthermore, MoneyGram is not a party to the SEC action. MoneyGram has continued to utilize its other traditional FX trading counterparties throughout the term of the agreement with Ripple, and is not dependent on the Ripple platform to accomplish its FX trading needs.”

However, Ripple and MoneyGram continue to hold close association with each other. The two companies have entered a strategic partnership for cross-border payments back in June 2019. As part of this collaboration, Ripple invested $50 million while taking stock options in MoneyGram.

But earlier this month, Ripple sold $15 million of its MoneyGram (NASDAQ: MGI) stock while not giving any specific reason behind it. On Wednesday, the MoneyGram stock tanked 12% closing at $6.03 levels. The MGI stock price is still at a 200% premium on a year-to-date basis as of Wednesday closing.

XRP Registers Massive Sell-Off, Price Slips to $0.25

Soon after the SEC lawsuit on Tuesday, the XRP has crashed south losing more than 50% on the weekly charts. At press time, XRP is trading 20% down at $0.26 with a market cap of $12 billion. This is for the first time in the last 50 days that XRP is trading at such low levels.

The charges made by the SEC note: “Ripple raised funds, beginning in 2013, through the sale of digital assets known as XRP in an unregistered securities offering to investors in the U.S. and worldwide. Ripple also allegedly distributed billions of XRP in exchange for non-cash consideration, such as labor and market-making services”.

Ripple CEO Brad Garlinghouse has called this an attack against innovation and fair business practices. He even named SEC chairman Jay Clayton for selectively pursuing this action against Ripple. Interestingly, just a day after the SEC issued, the SEC chairman has issued a resignation.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.





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